The Austin-based grocer’s stock fell more than 12 percent Wednesday after the company reported shrinking first quarter profits that missed Wall Street’s estimates.

So much for the theory that Whole Foods’ customers were such chic-chic bourgeois butterballs that they would always spend top dollar for an organic quiche. And that the company would be immune to a downturn.

Traditional grocers increasingly offer organic products for less. And with gasoline at $3.60 a gallon, the neighborhood Safeway or King Soopers is suddenly feeling a lot more hip. Read more…